Liberation Node ROI Model

Liberation Node ROI Model

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1. Overview

• Nodes Sold: 20,000 Liberation Nodes sold to retail investors.

• Node Pricing: Starting at $350.00, with incremental increases of $50 per 1,000 nodes.

• Node Rewards: Liberation Nodes receive 25% of the gas fees generated from on-chain transactions.

• Target ROI: Each node generates approximately $3,000 annually, adjusted for transaction volume and gas fee scaling.

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2. Assumptions and Key Metrics

2.1 User Growth

• Monthly user growth is projected exponentially, increasing at a rate derived from the provided data.

2.2 Transaction Volume

• Assumed to grow proportionally with user growth.

• Formula:

Vm​: Monthly transaction volume g: Growth rate

2.3 Gas Fees

• Gas fees are a fixed percentage of transaction volume.

• Formula:

Fm​: Monthly gas fees r: 0.2% (0.002)

2.4 Node Reward Allocation

• Liberation Nodes collectively receive 25% of the total gas fees.

• Formula:

Rm​: Total rewards allocated to nodes per month.

2.5 Reward Per Node

• Monthly reward per node is calculated by dividing the total rewards by the total number of nodes.

• Formula:

Nm​: Reward per node n: 20,000 (number of nodes)

2.6 ROI Calculation

• Monthly ROI is expressed as:

ROIm​: Monthly ROI C: Node cost per investor ($1,000)

2.7 Annual Target Reward

• Adjusted rewards aim for an annual reward of $3,000 per node.

• Formula:

3. Calculations

Step 1: Adjust Gas Fees and Rewards

• Adjustment factor (α) to scale current rewards to the target:

  
• Current Total Annual Reward is calculated as the sum of monthly rewards (Nm​) over 12 months:

  
• Target Annual Reward is set to $3,000.

• Adjusted Gas Fees (Fm,adjusted):

  
• Adjusted Node Reward (Nm,adjusted​)

Step 2: Recalculate ROI

• Adjusted ROI (ROIm,adjusted) is recalculated using the formula:

Where CCC is the node cost per investor

Step 3: Validate Against the Target

• Verify that the adjusted monthly rewards across all nodes approximate the target annual reward:

3. Results

Month	Users	Gas Fees Adjusted ($)	Reward Per Node ($)	ROI (%)
1	390,000	600,481.99	12.01	4.18
2	507,000	897,720.58	17.95	6.24
3	659,100	1,342,092.26	26.84	9.34
4	856,830	2,006,427.94	40.13	13.96
5	1,113,879	2,999,609.77	59.99	20.87
6	1,448,043	4,484,416.60	89.69	31.20
7	1,882,456	6,704,202.81	134.08	46.64
8	2,447,192	10,022,783.20	200.46	69.72
9	3,181,350	14,984,060.89	299.68	104.24
10	4,135,755	22,401,171.03	448.03	155.83
11	5,376,481	33,489,750.70	669.80	232.97
12	6,989,426	50,067,177.29	1,001.35	348.29

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4. Key Insights

4.1 Predictable ROI

• A steady annual reward of $3,000 per node, offering predictable returns to investors.

4.2 Scalable Growth

• As user growth and transaction volume increase, node rewards scale proportionally.

4.3 Investment Stability

• The gradual increase in rewards provides long-term incentives for retail investors.